Health and care brands group Ascendis Health today announced that it had received Competition Commission approval to proceed with the 100% acquisition of pharmaceutical business Akacia Healthcare for R345m.

Akacia manufactures and distributes branded generic prescription, over-the-counter and complementary medicines, with leading positions in several pharmaceutical market segments.

This deal strengthens Ascendis Pharma’s position in the prescriptions and consumer health markets, while adding leading brands such as the probiotic, Reuterina, ranked number one in the anti-diarrheal market with over 30% market share, as well as household brands such as Sinucon and Sinuend, which are in the top three brands in the cold and flu market.

“We are delighted to have received the green light, as this acquisition will contribute towards growing the local and international position of our Pharma division in the prescriptions medicine and consumer health markets, while at the same time offering access to lucrative new distribution channels such as retail pharmacies and prescribing doctors,” comments Dr Karsten Wellner, Ascendis Health chief executive officer.

The transaction also includes Akacia Pharma’s 23,000m² state of the art manufacturing facility in Isando, Johannesburg, valued at R100m. The integration of this facility will immediately offer an additional and enhanced local pharmaceutical manufacturing capability to the group, utilising available capacity and local production economies, especially for the growing international portfolio of brands, while at the same time increasing competitive participation for state tenders which favour local manufacture. The acquisition also presents additional integration benefits aligned to the recent 49% stake in Spanish generic specialist - Farmalider.

“This important acquisition is aligned with our overall vision to become a leading global player in the human, plant and animal health and care sectors by strategically integrating leading brands into the Ascendis Health group, allowing us to extract and benefit from the synergies that exist, while competitively growing new market segments for the benefit of consumers as well as our shareholders,” concludes Dr Wellner.